Groupon, Inc.

Q2 billings and revenue each declined 1% year over year. Adjusted EBITDA finished at the high end of guidance, and free cash flow was positive $15 million. Management said the top-line miss was concentrated in North America Local. For Q3 2026, Groupon expects billing growth of 4% to 6%, revenue of $128 million to $130 million, adjusted EBITDA of $19 million to $21 million, and negative free cash flow. For full-year 2026, it maintained outlook for billings growth of 3% to 5%, revenue of $513 million to $523 million, adjusted EBITDA of $75 million to $80 million, and free cash flow of at least $60 million. Management also said second-half revenue growth is expected to be approximately 6% at the low end and approximately 10% at the high end.

Dusan Senkypl framed Groupon as a local experiences marketplace being rebuilt around AI, trust, and personalization. He emphasized Project Foundry as the company’s most consequential initiative, saying the goal is for Groupon to become AI-fluent by the end of 2026 and to accelerate execution across the business. His tone was constructive and confident, but he acknowledged that the transformation is still uneven and that the acceleration in the outlook requires the current initiatives to ramp successfully.

Rana Kashyap largely reinforced the operating commentary with financial context: Q2 had a 1% year-over-year decline in both billings and revenue, while adjusted EBITDA was at the high end of guidance and free cash flow was positive $15 million. On guidance, she reiterated Q3 revenue of $128 million to $130 million, adjusted EBITDA of $19 million to $21 million, and negative free cash flow, with the full-year targets unchanged at revenue of $513 million to $523 million, adjusted EBITDA of $75 million to $80 million, and free cash flow of at least $60 million. She also said July strength was broad-based, with North America and international both improving, plus strength in Things To Do and Beauty and Wellness.

Analysts pressed on the new UI rollout, trust and quality improvements, July’s rebound, and whether any of the recent improvement is attributable to Foundry. Management said the new platform is in the final phases of migration and will be fully rolled out by the end of Q3, while trust-and-quality work is being measured mainly by repeat purchase, conversion to second purchase, and lower refunds. On the July rebound, management said the strength was companywide, with North America Local improving versus Q2 and North America Travel also stronger, while international held at prior levels. On Foundry, Dusan said it is already speeding up internal delivery and feature development, but the financial impact is still expected to come indirectly through better products, faster shipping, and better marketing returns.